1a. The issue is to determine if the essentials of a contract have contributed to a binding contract between Leila and Julie.
In order to enforce a contract, four elements must be present and they are offer, acceptance, consideration and an intention to create legal relations.
According to Preston Corporation Sdn Bhd v Edward Leong (1982), an offer was defined as: “An offer is an intimation of willingness by an offeror to enter into a legally binding contract. In terms either … to be binding on the offeror as soon as it has been accepted by the offeree.” An offer made to a large group of persons or the world at large can be claimed by the person who satisfy the requirements of the offer. This principle is supported in Carlill v Carbolic Smoke Ball Co (1893).
Acceptance has a few principles to abide when it is being made while the offer is still in force and that is when an agreement comes into existence. In general an acceptance must be positive, unqualified and communicated. According to Felthouse v Bindley (1862), the offeror has to acknowledge the offer made by the offeree and even if the offeror remains silent and does not reject the offer, it does not constitute to an acceptance. Thus, the offeror must positively accept the offer before it can be deemed as an acceptance.
For an acceptance to be unqualified means that there should not be any changes made to the offer as it would amount to a counter-offer and deem the original offer void. This can be seen in the case of Neale v Merrett (1930).
An acceptance must be communicated, meaning it must be received by the offeror in whichever way the offeror specifies the mode of communication of acceptance to be. Any other form of acceptance would render the acceptance invalid as supported by Entores Ltd v Miles Far East Corp. (1955).
However, there are three exceptions whereby acceptance need not be communicated to or received by the offeror. There are waiver of communication, silence and The Postal Rule....